Bosnia And Herzegovina Selected Issues

Download or read book Bosnia and Herzegovina written by International Monetary Fund. European Dept. and published by International Monetary Fund. This book was released on 2015-10-28 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper analyzes government spending in Bosnia and Herzegovina (BiH). The size of the public sector in BiH is one of the largest in the region, owing mainly to a complex and highly decentralized governance structure. BiH spends a greater share of public resources on current spending items, notably on wages and social transfers. Moreover, poorly targeted social benefits generate adverse incentives with respect to informality and labor force participation. To enhance economic growth, BiH will need to refocus its spending and increase its efficiency, chiefly on spending on human and physical capital.